Banco Madrid requested protection from creditors mid-March after Andorra seized control of privately-owned BPA in the midst of an investigation over U.S. allegations of money laundering.
FROB, the Spanish state-funded vehicle which bailed out several Spanish banks during the height of the financial crisis in 2012, said it would not bail out the bank as it did not pose a systemic risk.
(Reporting by Paul Day; Editing by Sonya Dowsett)